Commercial umbrella insurance gives you extra protection to help cover a claim that exceeds the limits of certain liability policies. Without this type of commercial insurance coverage, you’d have to pay out of pocket for costs that go over your policy limits.
This can include:
• Legal costs.
• Medical bills.
• Damage to other people’s property.
• Judgments and settlements.
Commercial umbrella insurance extends the limits of certain liability policies. This includes general liability insurance and commercial auto insurance. Another name for this coverage is business umbrella insurance.
Our commercial umbrella insurance is flexible. It can extend the liability coverage that you may have with other insurance companies. So, if you have a commercial auto insurance policy from another insurer, we can give you an additional layer of protection and extend its limit.
Be aware that commercial umbrella insurance is different than excess liability insurance. Excess liability coverage extends the limits on one specific liability policy. Commercial umbrella insurance is a type of excess liability insurance that extends the limits of different policies, which gives the insured broader protection.
Let’s say one of your employees gets into an accident while making a delivery to a customer. They accidentally crash into someone else’s car, causing significant damage and injuries. The costs to repair the damage, in addition to the medical bills, exceed your business’ liability limits.
Excess liability coverage can help pay for the costs that exceed your commercial auto or general liability policy.
Commercial umbrella insurance can help cover costs exceeding the limits of both your commercial auto and general liability policy.
A commercial umbrella policy can help cover:
• Bodily injury, like a customer getting hurt at your business.
• Property damage that your business caused.
• Lawsuits from customers or employees with work-related injuries or illnesses.
Be aware that commercial umbrella insurance adds an extra layer of protection to an existing, underlying policy. For example, if you don’t have a general liability insurance policy, you can’t get commercial umbrella coverage.
Insurance companies write business umbrella insurance policies with aggregate limits. These limits can range from $1 million to $15 million. This is the maximum amount your insurance company will cover for any claims made during your policy period.
Commercial umbrella insurance doesn’t cover all liability claims. It also doesn’t extend the limits of certain policies, like commercial property insurance.
Let’s say a fire significantly damages your business’ equipment. The cost to replace and repair your property exceeds your commercial property limits. You’d have to cover the difference out of pocket because commercial umbrella insurance doesn’t cover business property claims.
Typically, the smaller businesses interact with clients and customers in person, the higher their liability risks. Your risks can be even greater if your employees use heavy machinery or dangerous equipment.
If you think the cost of a claim could exceed your liability limits, it’s a good idea to consider commercial umbrella insurance.
This coverage can help if your business:
• Frequently interacts with customers.
• Works on someone else’s property
• Allows the public to visit during opening hours.
If people can visit your business, it increases the risk of bodily injury. For example, wholesalers often work with machinery to restock shelves during business hours. Using this type of equipment around customers poses a risk of injury. If someone gets hurt, you can face costly medical expenses and lawsuits exceeding your general liability limits.
Working offsite can also increase your business’ liability risk. For example, if your employees are working at a client’s house, there’s a higher risk of property damage.
They can accidentally:
• Put holes in the walls.
• Break windows.
• Damage cars.
What does commercial umbrella insurance cover? It helps increase your business’s liability coverage when the cost of a lawsuit exceeds the limits of your core business coverage. Watch this video to learn more about what commercial umbrella insurance coverage is and why your business may need it.
Commercial umbrella insurance costs vary by state. It can depend on the:
• Amount of underlying coverage.
• Limit amount.
• Type of business.
• Business size.
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